Enterprise Resource Planning Blogs by SAP
Get insights and updates about cloud ERP and RISE with SAP, SAP S/4HANA and SAP S/4HANA Cloud, and more enterprise management capabilities with SAP blog posts.
cancel
Showing results for 
Search instead for 
Did you mean: 
AvinoamFraenkel
Product and Topic Expert
Product and Topic Expert
0 Kudos

Automatic bin location allocation can be optimized to always clear out the bin locations holding the smallest quantities first, resulting in more available empty bin locations – or first pick from the bin locations with the largest quantities which will result in the smallest number of picks. The default for automatic allocation is set in the “Auto Alloc. on Issue” field in the Wareshouse Setup window.

To maximize empty bin locations, select “Ascending Quantity”. To minimize the number of picks, select “Descending Quantity”.

Irrespective of the allocation strategy selected, it can always be changed from the bin location allocation screen for any inventory issue.

In addition to the “Ascending Quantity” and “Descending Quantity” options it is also relevant to highlight the “Ascending Quantity – Single Bin Preferred” option.  This option merges the two strategies. It will first attempt to automatically allocate the smallest bin location which can fulfill the required order quantity in a single pick. If no such bin location exists then it simply allocations the smallest bin locations first, resulting in optimized warehouse storage.